Iceland announces personal income tax and corporate tax changes for 2024

February 02, 2024

The Iceland Revenue and Customs has released the key rates and amounts for 2024, which provides individual income tax changes in 2024. The key changes in the monthly brackets and rates involving personal income taxes are as follows: Income

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Iceland announces CbC notification deadline for 2023

December 20, 2023

On 19 December 2023, Iceland published Notice 1525/2023 in the Official Gazette. The notice stipulates that the CbC report notification for the 2023 fiscal year must be submitted within one month from the year's end (by 31 January 2024, for the

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Iceland: Tax administration announces deadline for 2022 CbC notification

January 20, 2023

On 2 January 2023, the Icelandic Directorate of Internal Revenue published Notice 1609/2022, announcing the Jan. 31 deadline for submitting country-by-country (CbC) reporting for the fiscal year 2022. The notice contains that the notification must

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OECD: Updates to Transfer Pricing Country Profiles

March 01, 2022

On 28 February 2022 the OECD released updated transfer pricing country profiles for 22 countries, together with new transfer pricing profiles for six more countries. This is the third batch of updates for 2021/22. The OECD transfer pricing

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Iceland sets 31 January 2022 deadline for 2021 CbC notification

December 29, 2021

On 22 December 2021, Iceland published the Notice No.1490/2021 which provides that the CbC report notification in respect of the 2021 fiscal year is to be submitted by 31 January 2022. Companies must designate a company group member to submit CbC

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Iceland publishes a law on new penalties for transfer pricing documentation

July 02, 2021

On 15 June 2021, Iceland published Law 61/2021 in the Official Gazette introducing new rules for the imposition of fines on taxpayers who fail to comply with transfer pricing documentation requirements for related party transactions, whether

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OECD: Peer review reports on making tax dispute resolution more effective

May 25, 2021

On 25 May 2021 the OECD released a further batch of eight Stage Two peer review reports in relation to making dispute resolution mechanisms more effective under BEPS Action 14. The minimum standard under BEPS action 14 is concerned with

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Iceland: Parliament approves a bill to implement tax measures under 2021 budget

October 15, 2020

On 1 October 2020, the Icelandic Parliament approved a Bill No.5 in order to implement tax measures under the 2021 budget. The bill includes the following measures; Taxes on carbon, alcohol and tobacco, oil, and car tax increased by

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Iceland: Parliament passes a bill to amend various taxes

May 20, 2020

On 6 May 2020, the Icelandic Parliament passed a Bill No.1329 amending income, withholding, excise, and VAT laws. The bill includes the amendments for corporate taxpayers in relation to the ISK 100 million safe harbor threshold for Iceland's

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COVID-19: Iceland passes additional tax relief measures

April 08, 2020

On 30 March 2020, the Icelandic parliament passed further two different legislative acts as relief measures in response to the COVID-19 pandemic. Accordingly, employers could have the right to postpone payment deadlines for social security tax and

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COVID-19: Icelandic parliament passes legislation providing postponement of tax payments

March 18, 2020

On 13 March 2020, the parliament of Iceland has passed a legislation that provides for the postponement of tax payments. Legal entities are permitted to postpone the payment of half of the social security tax, that was originally due on 16 March

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Iceland: The Ministry of Finance and Economy presents a draft law on TPD penalties to Parliament

February 29, 2020

On 18 February 2020, the Ministry of Finance and Economy submitted a draft bill to the parliament regarding new penalties for failing to comply with transfer pricing documentation requirements. The draft law also includes an amendment to clarify

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Iceland: MLI enters into force

January 28, 2020

On 1 January 2020, the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting (MLI) entered into force for Iceland. On 26 September 2019, Iceland deposited its instrument of ratification for

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Amending protocol to the Nordic tax treaty enters into force

December 12, 2019

On 28 November 2019, the amending protocol to the Nordic tax treaty (Denmark, the Faroe Islands, Finland, Iceland, Norway, and Sweden) was entered into force in respect of Norway and applies from 1 January

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Iceland: Government announces fiscal budget proposal for 2020

October 02, 2019

On 6 September 2019, Mr. Bjarni Benediktsson, the honorable Minister of Finance and Economic Affairs of Iceland introduced the fiscal budget proposal for 2020 that would be presented before Parliament on Tuesday 10 September 2019. Among the salient

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Iceland: MOF Seeks Comments on draft CbC reporting regulations

July 15, 2019

On 12 July 2019, the Ministry of Finance and Economic Affairs has opened a public consultation on draft CbC reporting regulations. The draft regulation includes the measures outlining the income, taxes, and economic activities of multinational

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Iceland: Parliament adopts increased withholding tax rates for 2018

January 31, 2018

The parliament has approved the Budget for 2018 and it has implemented an overall increase in withholding tax rates effective 1 January 2018 as follows: the standard rate of withholding tax on Icelandic interest, capital gains and dividend income

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Japan: DTA with Iceland signed

January 29, 2018

On 15 January 2018, the Japanese Ministry of Finance issued a press release announcing that the Government of Japan and the Government of the Republic of Iceland signed the Convention between Japan and Iceland for the Elimination of Double Taxation

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